Seatrade Maritime is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Petronas boss calls for faster oil & gas consolidation

Petronas boss calls for faster oil & gas consolidation
The writing seems to be on the wall for smaller players in the oil and gas (O&G) industry in Malaysia, with Petronas president and ceo Wan Zulkiflee Wan Ariffin repeating calls for more consolidation, local reports said.

“I feel that consolidation among players within the Malaysian oil and gas (O&G) industry is not happening as quickly as we would like,” Wan Zulkiflee was quoted as saying.

His comment, however, comes soon after Petronas unit MISC issued a statement denying a report that it was considering a corporate exercise to merge its floating production storage and offloading (FPSO) business with Bumi Armada's.

At the same time, Wan Zulkiflee pointed out the disparity in number of subcontractors between Norway and Malaysia, with the former having less than 20% of the 3,700 companies registered to work with Petronas.“Many (O&G) companies in Malaysia are small in size and the industry is too fragmented and inefficient,” he said, adding that Petronas has had several engagements with some of the players.

Giving the example of fabrication yard utilisation rates in Malaysia, Wan Zulkiflee said: “In our projection, there will not be enough (job) volume for all the companies in the next few years.”While there are eight fabrication yards with a capacity of 120,000 tonnes, there will be a big drop in the volume of work to just 20,000 tonnes next year.